working capital turnover ratio class 12

Working Capital 90000. A Inventory turnover ratio and working capital turnover ratio b Liquid Ratio and Operating Ratio c Liquid Ratio and Current Ratio d Gross Profit Margin and Net Profit Margin.

Accounting Ratios Class 12 Important Questions Accountancy Chapter 10

Working Capital turnover ratio Accounting Ratio Activity ratio class 12 Accounts video 110class 12 Accountsaccounting ratiosworking capital turnover.

. The two basic measures of operational efficiency of a company are. It shows the number of times a unit of Rupee invested in working capital produces sales. The best app for CBSE students now provides accounting for partnership firms fundamentals class 12 Notes latest chapter wise notes for quick preparation of CBSE board exams and school-based annual examinations.

Exercise Q 103 Page 104. 200000 and general reserve Rs. The working capital turnover ratio is thus 12000000 2000000 60.

Calculate the amount of Current Assets and Current Liabilities. 200000 and general reserve Rs. If share capital Rs.

The working capital of a company is the difference between the current assets and current liabilities of a company. We now look at the meaning and characteristics of working capital turnover ratio as mentioned in the chapter on accounting ratios class 12. Trade Payable Turnover Ratio Purchases Average Trade Payables Purchases Creditors Bills payable 420000 90000 52000 420000 142000 296 times d Working Capital Turnover Ratio.

The value of current liabilities will be. Working capital Current assets - Current liabilities Working capital 550000 - 180000. Similarly a better debtors turnover ratio may be.

It reflects relationship between revenue from operations and net assets capital employed in the business. Accounting Ratios Class 12 MCQs Questions with Answers. It is a relationship between working capital and revenue from operations.

The working capital turnover ratio is thus 12000000 2000000 60. MCQ Of Accounting Ratios Class 12 Chapter 10 Question 3. Current Ratio 25 Quick Ratio 15 Working Capital 60000.

Students can refer to mcq questions for class 12 accounting ratios provided below. Working capital turnover ratiocost of revenue from operations or revenue from operations i. A Liquidity Ratios 1.

If share capital Rs. Take the Next Step to Invest. From the following information calculate the working capital turnover ratio.

MCQ Questions for Class 12 Accounting Ratios. 60000Calculate net credit revenue from operations. The formula for calculating working capital turnover ratio is Working capital turnover ratio Sale or Costs of Goods Sold Working Capital If a company has a higher level of working capital it shows that the working capital of the business is utilized properly and on the other hand a low working capital suggests that business has too many debtors and the inventory is unused.

Two basic measures of liquidity are. A Inventory turnover ratio B Interest coverage ratio C Working capital turnover ratio D Trade receivables turnover ratio Answer. Working capital turnover ratio 5 Times.

When ratios are calculated on. C Liquid Ratio and Current Ratio. A 11 b 0 c 15 b Cant say.

Ans d What will be the current ratio of a company whose net working capital is Zero. Read below DK Goel Solutions for Class 12 Chapter 5 Accounting RatiosThese solutions have been designed based on the latest Class 12 DK Goel Accountancy book used by commerce stream students issued for the current year and the questions given in each chapter. Working capital turnover ratio 1850000370000.

Accounting Ratios Class 12 Accountancy MCQs Pdf. Working capital turnover ratio 5 Times Working note 1. Revenue from the operation for the year was RS.

Financial Management Important Questions for CBSE Class 12 Fixed Capital and Working Capital. Which of the following is not an activity ratio. A 3 times b 5 times c 8 times d 4 times.

This means that every dollar of working capital produces 6 in revenue. Revenue from the operation for the year were RS. 100000 and total assets RS 2100000.

Working capital turnover ratio 5 Times. Or Current Assets 35 Current Liabilities 1 Working Capital Current Assets Current Liabilities. Multiple Choice Questions Select the best alternate and check your answer with the answers given at the end of the book.

A 15000. 500000 reserve surplus Rs. Ratio It is an arithmetical expression of relationship between two related or interdependent items.

A Inventory Turnover Ratio and Working Capital Turnover Ratio. Accounting Ratios It is a mathematical expression that shows the relationship between various items or groups of items shown in financial statements. Meaning of Working Capital Turnover Ratio.

12 00000. Compute Gross Profit Ratio from the following information. Working Capital is 90000.

A Inventory turnover and Current ratio B Current ratio and Quick ratio C Gross Profit ratio and Operating ratio. This is reflected in a higher inventory turnover ratio. Accounting Ratios CBSE Notes for Class 12 Accountancy Topic 1.

Accounting Ratios class 12 Notes Accountancy in PDF are available for free download in myCBSEguide mobile app. Plant and machinery land and building etc. Cost of revenue from operations is 1200000.

Current assets cash bank trade receivable current assets 200000 300000 50000 current assets 550000 Let cost of goods sold be 100. Multiple Choice Questions MCQs. 500000 reserve surplus Rs.

Current Ratio is 351. Interest coverage ratio is a solvency ratio. B Interest coverage ratio.

From the following information calculate the working capital turnover ratio. 100000 and total assets RS 2100000. Ans b Given that.

B Liquid Ratio and Operating Ratio. Working capital turnover ratio Classification of Ratios Question 12. Its working capital turnover ratio will be.

1Fixed Capital The amount of capital investment in fixed assets is called fixed capital eg. D Gross Profit Margin and Net Profit. Working capital turnover ratio Turnover ratio Class 12.

Compute the Working Capital Turnover Ratio of the company. Trade receivable turnover ratio 5 times average trade receivables Rs. Working capital turnover ratio 1850000370000.

A firms current assets are 360000 current ratio is 3. This concludes our article on the topic of Working Capital Turnover Ratio which is an important topic in Class 12 Accountancy for. MCQ Questions Class 12 Accountancy Accounting Ratios Question.

1 or 25 Current Liabilities 90000.

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Working Capital Turnover Ratio Meaning Formula Calculation

Compute Working Capital Turnover Ratio If The Cost Of Goods Sold Is Rs 9 60 000 Gross Profit Ratio Is 20 And Excess Of Current Assets Over Current Lia Accountancy Topperlearning Com Cgwwfl99